'Royal Bank of Scotland (RBS), which is 84 per cent owned by the British taxpayer, will pay out up to £1.7 billion in bonuses to its bankers after reporting a £3.6 billion pre-tax loss for the past financial year.

The loss for the 12 months to December 31 is less than the £5 billion expected and far below the £24.3 billion loss that RBS reported for 2008, a record for any British company.

However, the bank is facing criticism over its decision to reward investment bankers with bonuses worth £1.3 billion, or 27 per cent of its revenue, after receiving billions of pounds in taxpayers' money during the recession to save it from collapse. Other staff will share up to £400 million in bonuses.'

Read more: RBS to Pay £1.7 Billion in Bonuses despite £3.6 Billion Loss